Facing Retrenchment.

[Chunk20]

That sucks.

 

[maumau]

None

The is nothing to be happy about I'm happy I still have a job, but deep down I'm sad I got promotion early this year now this. Now I have to adjust my budget, but he said I will get my current salary for six months. Then the assistant salary will kick in after.

At least you can use the time to look for another job.

 

[Brieuse]

Good day
Two months back our HR called us into a boardroom, he informed us the company is going through hard time financially. The company has issued section 189, and those that are called into the boardroom we are affected by section 189. We have opportunity to ask for demotion for entry level job.

Fast forward this was on Friday I went home for weekend, Monday I went to the office to ask more about the entry level job. He told me everything is on hold for now, fast forward I went to him like three times. As I saw he was helping other workers with demotion, sending them to other departments in the company.

He said the head office has not said anything about our category, regarding demotion. He said the following week I must go for portable skill training in case the company goes ahead with retrenchment. In my department the company need to retrench 6 people, 5 agreed to go for portable skill training. None of us were offered the opportunity to take demotion.

Boom this week that colleague of mine in our department, who refused to go for portable skill training he is called in the boardroom forced retrenchment. He bring out the demotion issue HR manager he is surprised, he ask the HR office why he didn't offer my colleague demotion.

The matter is taken to head office, head office respond by saying the is nothing they can do. They thought we were offered opportunity for demotion, the list is out everything is finalised. I too lodged a complain through the union.

Head office said they will give feedback Tuesday, I'm asking legally do I stand a chance to win this if I take this to labour court or I should just walk away if they do retrench me.

It's not like I'm holding a high position I'm just on top of entry level position, I have been with the company for 8 years. Hence I decided to take the demotion it was going to be R1800 difference in my salary.

People who have been with the company for two years were offered, a chance for demotion others took it and others refused are waiting for forced retrenchment. Do you guys think if head office fail to offer me demotion, do I stand a chance at labour court.

I know my english is not that good so please let's not go there.....

Sorry to hear , not sure why these dicks seem to think this is best time of year for it

 

[ForceFate]

I've seen something similar unfold. Only this time, company may have been trying to get people on lowest pay in preparation for eventual retrenchments (reduced severance pay bill). Employers can be sneaky.

 

[semisane1987]

I've seen something similar unfold. Only this time, company may have been trying to get people on lowest pay in preparation for eventual retrenchments (reduced severance pay bill). Employers can be sneaky.

You are correct it's a robbing business if the company retrench me on B2 salary I'll get more than R100k retrenchment package with my 8 years experience. When the company decide to retrench me on A4 salary I'm going to get like R90K retrenchment package.

 

[IOPS]

That sucks dude, being retrenched is a horrible thing to go through. It's made worse with companies like this who aren't transparent or generally just don't care about their staff.

I went through retrenchment about 6 years ago. It sucked and was stressful beyond belief.
I wasn't able to find a job for about 3 months, but looking back - I still maintain it was the best thing for my career. Take the time to find work at a company that gives a **** about you. It's gonna be a tough decision, take the money and cut ties with the company.

 

[Topdoggdbn]

You are correct it's a robbing business if the company retrench me on B2 salary I'll get more than R100k retrenchment package with my 8 years experience. When the company decide to retrench me on A4 salary I'm going to get like R90K retrenchment package.

Look at it this way that 10k difference is more than covered with the 6 months current salary you will still receive. its a win.
I went through a 197(moved to another company) and most of my then colleagues took the Voluntary package. years later i still earn the same and their package money was finished within the first 6 months and all in lower paying jobs elsewhere or with new company.

It's Crap but stick it out while you look for something better.

 

[geezer]

We're currently going through something similar, the second one in about 5 years. The company is downsizing, having started at the top and working their way down.

The bad thing is that our new proposed structure will only be made known the second week of next year. So most of us will have to go through the Christmas break period with this uncertainty hanging over our heads. We have been offered voluntary retrenchment (VR) packages, and if you are over 55 the option of voluntary early retirement (VER) packages.

I will be mulling whether I should not take a VER seeing I will be 56 early next year, having been with the company for just over 35 years. The VER package offered is substantial. My pension fund at the moment is enough to live from fairly comfortably. Should I take up this VER, my last day at work will be end of June 2019. This also is the end of the company's financial year and I will also qualify for a full year's bonus should one be approved.

 

[Peon]

We're currently going through something similar, the second one in about 5 years. The company is downsizing, having started at the top and working their way down.

The bad thing is that our new proposed structure will only be made known the second week of next year. So most of us will have to go through the Christmas break period with this uncertainty hanging over our heads. We have been offered voluntary retrenchment (VR) packages, and if you are over 55 the option of voluntary early retirement (VER) packages.

I will be mulling whether I should not take a VER seeing I will be 56 early next year, having been with the company for just over 35 years. The VER package offered is R1,717,183.87. My pension fund at the moment is roughly another 7 Million. Should I take up this VER, my last day at work will be end of June 2019. This also is the end of the company's financial year and I will also qualify for a full year's bonus should one be approved.

Sho, 35 years, thats impressive. ASSET.

If I may ask, whats your companies reason for downsizing? Financial outlook in SA as well? One of my clients retrenched 44 people. Community put a break on their operations because of dust and noise.

 

[geezer]

Sho, 35 years, thats impressive. ASSET.

If I may ask, whats your companies reason for downsizing? Financial outlook in SA as well? One of my clients retrenched 44 people. Community put a break on their operations because of dust and noise.

I work in the R&D division of the company. The need for further development on Gas To Liquid catalyst research is waning. Our R&D department has a personnel contingent of about 500, which they feel is too much, and the new structure will probably cater for about 250 - 300. They are calling this process "Re-positioning", which means that they may offer you a position in another area, but may not necessarily be in your area of expertise, nor in the same town. External appointments have been put on hold, and "redundant" personnel from R&D must be first considered for appointments. Whether I will still have a position will depend on the new proposed structure.

 

[falcon786]

We're currently going through something similar, the second one in about 5 years. The company is downsizing, having started at the top and working their way down.

The bad thing is that our new proposed structure will only be made known the second week of next year. So most of us will have to go through the Christmas break period with this uncertainty hanging over our heads. We have been offered voluntary retrenchment (VR) packages, and if you are over 55 the option of voluntary early retirement (VER) packages.

I will be mulling whether I should not take a VER seeing I will be 56 early next year, having been with the company for just over 35 years.Should I take up this VER, my last day at work will be end of June 2019. This also is the end of the company's financial year and I will also qualify for a full year's bonus should one be approved.

That's a decent enough package to retire on even if you just put it away and live of the interest/dividends assuming you already have a house,car and other major expenses covered.

Thing is you don't want to post the exact amounts on the internet,it could lead to people targeting you via phishing and other worse methods,basically making yourself a target.

I suggest you delete the amounts.

 

[geezer]

That's a decent enough package to retire on even if you just put it away and live of the interest/dividends assuming you already have a house,car and other major expenses covered.

Thing is you don't want to post the exact amounts on the internet,it could lead to people targeting you via phishing and other worse methods,basically making yourself a target.

I suggest you delete the amounts.

Good advice, I have done so. But because you quoted on the post, the amounts still reflect in your reply.

 

[geezer]

That's a decent enough package to retire on even if you just put it away and live of the interest/dividends assuming you already have a house,car and other major expenses covered.

I do have a house that's almost paid off and my car is paid off.

The money will stay in the company's pension fund, so I will in effect keep on getting a fixed monthly "salary". I will not have any access to this money for any ad-hoc cash withdrawals. Because of the long service with the company, I also stay subsidised on the company medical aid.

 

[falcon786]

Good advice, I have done so.

Pleasure man,what you could also do is take a small amount maybe 10 to 15 percent and look into some small business venture you may have thought about during the years to keep you busy.

Don't bet the farm on it though as many small ventures do actually fail but it's definitely worth a shot and if it works who knows you may actually just create something of value for yourself,your family and even the country.

 

[geezer]

Pleasure man,what you could also do is take a small amount maybe 10 to 15 percent and look into some small business venture you may have thought about during the years to keep you busy.

Don't bet the farm on it though as many small ventures do actually fail but it's definitely worth a shot and if it works who knows you may actually just create something of value for yourself,your family and even the country.

According to current tax legislation, R500K can be withdrawn tax free, so I may possibly take up on that. We are still waiting on more clarity w.r.t. the severance package. According to some directives that's been passed along among ourselves, that may also be subject to a R500K tax free withdrawal. The first people that applied for the severance packages are leaving in March, so we are keeping an keen eye on them to see what their tax implications will be.

 

[diapason]

According to current tax legislation, R500K can be withdrawn tax free, so I may possibly take up on that. We are still waiting on more clarity w.r.t. the severance package. According to some directives that's been passed along among ourselves, that may also be subject to a R500K tax free withdrawal.

The R500k tax-free is a once in a lifetime amount. You won't get it on both the retirement and retrenchment lump sums.